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SMS Revenues And Volumes Will Peak In 2003 And Stagnate In 2004, Says Forrester

SMS Revenues And Volumes Will Peak In 2003 And Stagnate In 2004, Says Forrester

SMS text messages currently account for 12% of European mobile operators’ revenues and this revenue will peak next year, according to a new report from Forrester Research.

“Mobile operators are right to exploit SMS’ full potential now,” said Forrester analyst Michelle de Lussanet. “Forrester’s five-year forecast for mobile messaging shows that SMS revenue will peak next year – SMS traffic volumes will stagnate in 2004, and effective price per SMS will fall sharply.”

In 2007, Forrester forecasts SMS revenues will represent 47% of total mobile messaging revenues, multimedia messaging (MMS) will bring in 32%; mobile instant messaging (IM) 10%; mobile email 9% and enhanced message service (EMS) 3%.

SMS traffic will rise to 11.5 billion messages per month in 2004, a 14% gain on 2001. But as other message formats – including EMS, MMS, IM, and email – take hold in 2004, substitution will begin and SMS volumes will drop off, says the report.

In 2007, volumes will slow to 11.1 billion messages per month – still 10 percent more than in 2002.

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